Honorable Robert Bunda

President of the Senate

Twenty-First State Legislature

Regular Session of 2001

State of Hawaii

Sir:

Your Committee on Ways and Means, to which was referred S.B. No. 1039 entitled:

begs leave to report as follows:

The purpose of this measure is to clarify that any special retirement benefit provided under the Civil Service Reform Act of 2000 will be forfeited if the retired employee returns to service.

Your Committee finds that the special early retirement incentive benefit of receiving an actuarially unreduced pension as provided by the Civil Service Reform Act of 2000 should not be allowed to be circumvented due to lack of conforming language in the Employees' Retirement System law. The massive and comprehensive nature of Act 253, Session Laws of Hawaii 2000, known as the Civil Service Reform Act of 2000, did reveal some "loopholes" which have to be corrected. This measure is designed to address one of the more significant matters.

As affirmed by the record of votes of the members of your Committee on Ways and Means that is attached to this report, your Committee is in accord with the intent and purpose of S.B. No. 1039 and recommends that it pass Third Reading.